Below is a Florida Insurance License: Life, Health, and Annuity Exam! Insurance is the act of putting money in a company so as to protect you from the occurrence of a risk that may lead to loss or damage to the insured. How about you up this quiz and see if you know about the covers in Florida insurance in order to get your dream job.
Questions and Answers
1.
A moral hazard is a hazard arising from indifference to loss because of the existence of insurance.
A. 
T
B. 
F
2.
Jimmy keeping his money out of the stock market is an example of risk avoidance.
A. 
T
B. 
F
3.
Only pure risks are insurable.
A. 
T
B. 
F
4.
Risk in the insurance business is best described as uncertainty regarding financial loss.
A. 
T
B. 
F
5.
One of the most effective ways of reducing risk is by buying insurance.
A. 
T
B. 
F
6.
A basic principle of insurance where a large number covers the losses of a few is called risk pooling.
A. 
T
B. 
F
7.
A tornado is an example of a moral hazard.
A. 
T
B. 
F
8.
An HMO is considered a service provider.
A. 
T
B. 
F
9.
A PPO is considered a service provider.
A. 
T
B. 
F
10.
Lloyd’s of London is considered a service provider.
A. 
T
B. 
F
11.
A reinsurer is a company that cedes the risk.
A. 
T
B. 
F
12.
Licensed agents legally represent the insurer in an insurance transaction.
A. 
T
B. 
F
13.
Fraternal Benefit companies must be non-profit organizations and can only offer benefits to members.
A. 
T
B. 
F
14.
The head of state a state office of insurance regulation is in charge of making insurance laws
A. 
T
B. 
F
15.
The state guarantee office guarantees that a policy will be issued.
A. 
T
B. 
F
16.
In addition to the state the SEC (Securities and Exchange Commission) regulates variable life and variable annuities.
A. 
T
B. 
F
17.
Producers are expected to assess the prospects financial ability to pay commissions.
A. 
T
B. 
F
18.
Reinsures usually deal with group policies.
A. 
T
B. 
F
19.
The buyers guide’s purpose is to ensure that the buyer obtains the lost price for insurance.
A. 
T
B. 
F
20.
Stock companies may be converted into a mutual company through a process call mutualization.
A. 
T
B. 
F
21.
In Florida the law specifies that no life or health insurance policy may be issued for delivery unless the application is taken by and the policy is delivered through a licensed agent who will receive commissions.
A. 
T
B. 
F
22.
A contract is an agreement that is enforceable by law.
A. 
T
B. 
F
23.
For a contract to be legally valid it is not necessary to contain an offer and acceptance nor does it need to contain consideration or legal purpose.
A. 
T
B. 
F
24.
Insurance contracts are aleatory in that there is an element of chance for both parties involved and the dollar values to be exchanged may not be equal.
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